United Kingdom A transaction at an undervalue in U.K. insolvency law can only be pursued by an administrator or liquidator of the company. The transaction must have been a gift, or a transaction where the company received consideration of money or money's worth which was significantly lower in value than the asset was worth. In Re MC Bacon Ltd (No 1), the court held that the granting of security could not be considered an undervalue transaction as it does not deplete or diminish the value of the assets of the company. In Phillips v Brewin Dolphin Bell Lawrie, the court held that it may be appropriate to consider the details of a series of linked transactions when determining whether the transaction was for an undervalue. In order for a transaction at an undervalue to be proved, the test in section 240 of the Insolvency Act 1986 must be satisfied. The transaction must have occurred within the relevant period of two years. The period is calculated by reference to the period of time immediately preceding the onset of liquidation. There is also a requirement for the company to have been insolvent when the transaction was entered into, or for the company to have become insolvent as a result of the transaction. This is presumed for a 'connected person', which may be rebutted, but must be proven by the liquidator or administrator in all other cases. There is a defence which the recipient of the transaction can rely on under section 238(5) of the Insolvency Act 1986 which applies where a transaction was entered in good faith, for the purpose of carrying on the business, and there were reasonable grounds when it was entered to believe that it would benefit the company. If it is proven that there was a transaction at an undervalue, then the transaction is voidable at the court's discretion and there are a number of possible court orders. These are listed in section 241 of the Insolvency Act 1986 and include returning the property to the company, returning the proceeds of sale to the company, and the discharge of any security. Australia An uncommercial transaction in Australian insolvency law occurs if it could be expected that a reasonable person in the same circumstances as the company would not have entered into the transaction with regard to the benefits and detriments to the company, the benefits to any other